EDC 05-18-2011
City of Cupertino
Economic Development Committee
Regular Meeting
Minutes for May 18, 2011
1.CALL TO ORDER
At 10:00 a.m.Kelly Kline called the meeting to order in Conference Room Aat City
Hall.
2.ROLLCALL
City Staff:Kelly Kline, Aarti Shrivastava, Timm Borden, Mark Linder, Traci Caton
Chamber: Paula Davis, John Zirelli
City Council: Orrin Mahoney, Kris Wang
Planning Commission: Paul Brophy
Guests: Mike Foulkes
3.APPROVAL OF MINUTES
Orrin Mahoneymade a motion to approve the February 2011minutes with a correction to
the spelling of “Roll” and Timm Bordenseconded the motion. The motion passed
unanimously.
4.ORAL COMMUNICATIONS-
None
5.NEW BUSINESS
A.Fiscal Strategic Plan –TOT Tax Analysis:
the average in our area is 10-14%,
there’s pressure to bump Cupertino’s up to 12%.Next Steps include meeting with
Cupertino hotels, Kelly has appointments with all 4 over the next 10 days. This is a
chance to check-in andbe a better partner, in addition to discussing the potentialTOT
Tax increase.
Foulkesbelieved roughly 50% of the rooms rented are from Apple, said that one of
Apple’s office in Texas handles negotiation of room rates. There could beunintended
resultsof raising the TOT.
Brophy commented that it’s not free money–we could lose out with a negative
tourism affect.Mahoney commented that all are weary of new taxes.
Kline plans to report back results of the meeting with hotels at the next EDC meeting.
B.Economic Development Manager Report
New Businesses:Flight Food & Wine, part of Café Torre, opened with much staff
attention to help shepherd it through the process. Bonjour Crepe relocated on Stevens
Creek closer to DeAnza Blvd and has a great feel in its new space.Stronkin
Electronics has located in the PacificBusiness Center which has monthly business
mixers; Pacific Business Center serves a sort of incubator for small businesses.
Leases:KeeWah Bakery and Bitter & Sweet Coffee is coming to Civic Park, Seagate
is moving in and getting settled as is Lab 126, Bay Club moving forward to locate in
part of Sears, Fidelity Title moving into De Anza Center, “Ruby” is a small format
version of Dynasty Restaurant going into the Food Court at Vallco Shopping Mall,
Shanghai Garden Restaurantis going into Oakmont ShoppingCenter at Stelling and
Homestead, Bar Code Restaurant on De Anza, Kiddie Academy is getting close to
finishing up at the old Furniture 2000, TJ Maxx is working towards an October 2011
opening in part of the old Mervyns site, and Village Falafel is workingto go into the
site on the SW corner of Blaney & Stevens Creek.
Real Estate Notes:Staytuned for two restaurant pads coming in at Vallco Shopping
Mall, restaurant at Crossroads Buildings, there may be an opportunity at Cupertino
Village to do something at the entrance where the Bank of the West is now, breakfast
restaurant at the Pacific Rim Center, Argonaut Windows looking to combine with
their Campbell location into one big store, Whole Foods is looking to partner with
“Off the Grid” a food truck type concept, may be going forward with a 6 monthtrial
as the mobile vendor trend is spreading.
Recently purchased building are up for sale again expecting to sell for a profit, such
as those on occupied by Apple on Torre and Stevens Creek, JP Morgan bought the
building that Lab 126 occupies.Sandhill is looking to purchase the parcel north of
Macy’s from Evershine/KCR.
st
Addison Avenue Credit Union –formerly served HP employees, has merged with 1
Technology Credit Union. Will be a publically visible change soon.
Other:Mandarin Business Class recently offered was wildly successful, planning a
full day in November, class received great press in the World Journal and Cupertino
Courier. We have produced a Chinese-translated version of the Cupertino Overview
brochure. Restaurant Association is working with owners to meet new regulations for
all food handlers to be certified, offering a proctored exam.
Foulkes questioned whether there were any lessons learned in the mixed-use building
that Bonjour Crepe vacated given the tough retail situation. Shrivastava agreed the
concept can be tough when the development is isolated, when the Main Street project
is developed, Metropolitan as a mixed-use project, would benefit.
City’s Economic Health:Cupertino has the second to lowest vacancy rate in the
South Bay area at 7.85% but its average asking rate is second to highest at $2.85.It is
expected that next quarter the report will show less than 2%, R&D projected to be
less than 1% with the asking rate of $2.25.
6.OLD BUSINESS
A.Redevelopment Update
Housing Trust& Vallco DA are done.
B.VallcoUpdate
None.
C.Cupertino Restaurant Association Update
None.
D.City Updates
-Main Street Project / Sandhill:the project is likely to come in for some
rearrangements and modifications.
-Leadership 95014–Mark Linder invited EDC to attend the presentations &
graduation.
7.CURRENT DEVELOPMENT REPORT
A. Development Activity Report Presentation
Presented but not discussed.
B.Upcoming Development Projects for Planning Commission/City Council
-Green Building Ordinance: City Council intends to adopt the ordinance in one year
allowing this time as a period of public education & outreach. It is scheduled to go
back to Council in May 2012 for codification.
-Development Permit Process: There’sbeen a lot of input from development
applicants. The ordinance amendments are expected to go to hearing in Aug 2011
-Limited review of the Single Family Dwelling & Sloped Lot ordinance: going to
hearings in July/Aug 2011
8.MISCELLANEOUS COMMITTEE UPDATES
Parks & Recreation Commission:
On June 2 will discuss/present the role of Economic
Chamber of Commerce Update:
Mixer @ 5:30 on 6/8/11
Diwali Festival will be held October 8
Taste of Cupertino held twice a year, next one will be Nov or Dec 2011.
Lease for Dance Academy which shares chamber building in discussion.
Star Awards were successful!
Chamber position opening for Government/Sales. Hoping for July 1 start date.
9.FUTURE ITEMS/CALENDAR
2011EDC Meetings –10:00 a.m.in Conference Room A:
th
August 17
o
th
November 16
o
10.ADJOURNMENT
The meeting was adjourned at 11:00 a.m.
___________________________
Kelly Kline
Economic Development Manager